The company says that customers will be able to order a new car over the Internet from 1 November and have it delivered to their door within a week of placing the order.

Initially, six models will be offered for sale over the Internet, two each from the Astra, Corsa, and Vectra range.

Customers will also be able to arrange finance, find out how much their existing car would be worth in a part-exchange, and arrange a test drive over the Web.

"Customers will further benefit from savings in normal marketing and distribution costs, which will be reflected in lower list prices," said Vauxhall Chairman and Managing Director Nick Reilly.

The details of the prices of specifications of the so-called .com cars will be revealed at the London Motor Show on 19 October. It is believed that savings of up to £1000 will be likely.

The Consumers Association, which last week launched its own cut-price car import service for its members, commented:
"It's a start. We want to see prices come down across the board. So pressure must be kept up."

Question-mark over franchises

The move is likely to put pressure on Vauxhall's 500 strong franchised dealer network, which will still continue to sell new cars.

Analysts say that the system of dealer franchises, with its system of recommended retail prices, is one reason for the high car prices.

Vauxhall said that it will further expand its Internet offerings over the next year.

"Further models are expected later and they will be offered at attractive prices with the opportunity to redeem points up to £2,500 from a GM Card against the purchase," the group said.

Industry under pressure

The car industry has been under pressure to cut its prices following an investigation from the Competition Commission which is due in December.

Many surveys have shown that identical cars are sold in Europe for prices far below those charged in the UK.

Ford and Volkswagen have already promised to refund the difference for any car bought between September 1 and the end of the year if prices subsequently fall.

In the United States, car buying over the Internet has become an important factor in forcing prices down, with customers able to compare prices and dealer mark-ups across the country.

Ford and Microsoft have just announced a tie-up to facilitate car buying over the Web.